Buying/Selling a house after poor credit history

L

LouMM

Guest
Wondering if anyone can offer advice on our situation. We've had some bad history on our mortgage account but its all fully up to date etc now. We want to move soon & cant really find anything right now in the area we're looking in. We are in the very lucky position of being able to move into a relatives house rent free on a temporary basis. What I want to know is would we be less likely to get a mortgage if we have already sold our house? I heard somewhere that if you've closed off your mortgage (i.e sold the house & settled the outstanding amount) you are less likely to get a mortgage again (particularly given our poor record) We'd get about 250K for our house, mortgage outstanding is approx 80K and the houses we're looking at are approx 450K. Given both our salaries we'd easily get the amount we need in principal but I'm worried about the poor records. I really don't want to sell our house & then find we can't get a mortgage when it comes to buying anything new. Anyone got any opinion on this? Would it all be sorted more easily by getting formal mortgage approval from the building society & then using that as our basis?
 
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It may depend on how recent your credit problems are.

If the last few years have shown a good repayment record, the problems you had in the past may be less relevant.

On the other hand, if it seems to a lending instituion that you are now selling your property as a means of dealing with your debt, they may take another view.
 
The poor history is fairly recent however there are no other arrears & other loans etc are minimal & will be closed down in the next couple of months.

Is it worth going to the b'soc to get their feedback or are the just likely to say that we should just keep the house we're in now. (BTW this is not really an option due to various reasons, most urgently that we need to move to be closer to care for an ill family member)

All advice/experience is greatly appreciated!
 
AFAIK, Credit Bureau records will show your credit history for the last two years, including details of late missed/late payments. But once the mortgage is finished, the detail stays on your record for another five years.

If your payment problems were in the last two years, the could keep cropping up on your credit history for the next five years. Why don't you check your credit record with the Irish Credit Bureau?
 
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